Alderighi, M, Nicolini, M and Piga, CAG (2015) Combined Effects of Capacity and Time on Fares: Insights from the Yield Management of a Low-Cost Airline. Review of Economics and Statistics, 97 (4). pp. 900-915.

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Abstract

Based on two strands of theoretical research, this paper provides new evidence on how fares are jointly affected by in-flight seat availability and purchasing date. As capacity-based theories predict, it emerges that fares monotonically and substantially increase with flight occupancy. After controlling for capacity utilization, our analysis also supports time-based theories, indicating a U-shaped temporal profile over a two-month booking period, as well as a sharp increase in fares in the two weeks prior to departure.

Item Type: Article
Uncontrolled Keywords: pricing policy, panel data, Ryanair, yield management
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Humanities and Social Sciences > Keele Management School
Depositing User: Symplectic
Date Deposited: 14 Oct 2015 11:21
Last Modified: 23 Apr 2019 15:45
URI: http://eprints.keele.ac.uk/id/eprint/1014

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